NasdaqGS:FELE

Stock Analysis Report

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Executive Summary

Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. More Details

Rewards

Earnings are forecast to grow 12.96% per year

Risk Analysis

FELE passed our risk checks.


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Franklin Electric's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FELE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FELE's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.5%

FELE

-3.2%

US Machinery

0.6%

US Market


1 Year Return

26.5%

FELE

20.7%

US Machinery

22.7%

US Market

Return vs Industry: FELE exceeded the US Machinery industry which returned 19.3% over the past year.

Return vs Market: FELE exceeded the US Market which returned 21% over the past year.


Shareholder returns

FELEIndustryMarket
7 Day-1.5%-3.2%0.6%
30 Day14.5%14.1%13.1%
90 Day12.3%11.2%4.5%
1 Year27.9%26.5%23.9%20.7%25.5%22.7%
3 Year54.8%49.8%31.7%22.2%49.0%39.1%
5 Year142.1%129.1%130.4%104.7%98.3%76.5%

Long-Term Price Volatility Vs. Market

How volatile is Franklin Electric's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Franklin Electric undervalued compared to its fair value and its price relative to the market?

34.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FELE ($68.37) is trading above our estimate of fair value ($28.33)

Significantly Below Fair Value: FELE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FELE is poor value based on its PE Ratio (34.2x) compared to the US Machinery industry average (29.3x).

PE vs Market: FELE is poor value based on its PE Ratio (34.2x) compared to the US market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: FELE is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: FELE is overvalued based on its PB Ratio (3.9x) compared to the US Machinery industry average (2.7x).


Next Steps

Future Growth

How is Franklin Electric forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FELE's forecast earnings growth (13% per year) is above the savings rate (2.2%).

Earnings vs Market: FELE's earnings (13% per year) are forecast to grow slower than the US market (21.9% per year).

High Growth Earnings: FELE's earnings are forecast to grow, but not significantly.

Revenue vs Market: FELE's revenue (4.7% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: FELE's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FELE's Return on Equity is forecast to be high in 3 years time (20.5%)


Next Steps

Past Performance

How has Franklin Electric performed over the past 5 years?

7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FELE has high quality earnings.

Growing Profit Margin: FELE's current net profit margins (7.4%) are lower than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: FELE's earnings have grown by 7.8% per year over the past 5 years.

Accelerating Growth: FELE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FELE had negative earnings growth (-6.5%) over the past year, making it difficult to compare to the Machinery industry average (-15.4%).


Return on Equity

High ROE: FELE's Return on Equity (11.6%) is considered low.


Next Steps

Financial Health

How is Franklin Electric's financial position?


Financial Position Analysis

Short Term Liabilities: FELE's short term assets ($602.5M) exceed its short term liabilities ($187.9M).

Long Term Liabilities: FELE's short term assets ($602.5M) exceed its long term liabilities ($201.4M).


Debt to Equity History and Analysis

Debt Level: FELE's debt to equity ratio (11.6%) is considered satisfactory.

Reducing Debt: FELE's debt to equity ratio has reduced from 43.3% to 11.6% over the past 5 years.

Debt Coverage: FELE's debt is well covered by operating cash flow (234.5%).

Interest Coverage: FELE's interest payments on its debt are well covered by EBIT (24.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Franklin Electric current dividend yield, its reliability and sustainability?

0.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FELE's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: FELE's dividend (0.91%) is low compared to the top 25% of dividend payers in the US market (4.18%).


Stability and Growth of Payments

Stable Dividend: FELE's dividends per share have been stable in the past 10 years.

Growing Dividend: FELE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.5%), FELE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FELE's dividends in 3 years are forecast to be well covered by earnings (24.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Gregg Sengstack (62 yo)

6.5yrs

Tenure

US$6,371,348

Compensation

Mr. Gregg C. Sengstack has been the Chief Executive Officer of Franklin Electric Co., Inc. since May 2, 2014 and has been its Chairman since May 8, 2015. He serves as President at Franklin Electric Co., In...


CEO Compensation Analysis

Compensation vs Market: Gregg's total compensation ($USD6.37M) is about average for companies of similar size in the US market ($USD5.20M).

Compensation vs Earnings: Gregg's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gregg Sengstack
Chairman6.5yrsUS$6.37m0.85%
$ 26.7m
John Haines
VP & CFO12.58yrsUS$1.57m0.065%
$ 2.0m
DeLancey Davis
VP & President of Headwater Companies3.58yrsUS$1.02m0.0071%
$ 224.0k
Donald Kenney
VP & President of Global Water3.58yrsUS$1.39m0.015%
$ 463.1k
Jonathan Grandon
VP, Chief Administrative Officer4.17yrsno data0.031%
$ 984.0k
Jay Walsh
VP & President of Franklin Fueling Systems1.83yrsno data0.022%
$ 687.7k

3.9yrs

Average Tenure

55yo

Average Age

Experienced Management: FELE's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregg Sengstack
Chairman6.5yrsUS$6.37m0.85%
$ 26.7m
David Wathen
Lead Independent Directorno dataUS$207.50k0.0055%
$ 172.5k
David Brown
Independent Director12.83yrsUS$232.00kno data
Jennifer Sherman
Independent Director5.83yrsUS$216.00kno data
Thomas VerHage
Independent Director10.33yrsUS$207.50kno data
Victor Grizzle
Director0.83yrno datano data
Renee Peterson
Independent Director5.17yrsUS$217.50kno data

5.7yrs

Average Tenure

62yo

Average Age

Experienced Board: FELE's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FELE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Franklin Electric Co., Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Franklin Electric Co., Inc.
  • Ticker: FELE
  • Exchange: NasdaqGS
  • Founded: 1944
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$3.159b
  • Shares outstanding: 46.20m
  • Website: https://www.franklin-electric.com

Number of Employees


Location

  • Franklin Electric Co., Inc.
  • 9255 Coverdale Road
  • Fort Wayne
  • Indiana
  • 46809
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FELENasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJan 1980
FE4DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1980

Biography

Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. It operates in three segments: Water Systems, Fueling Systems, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 23:46
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.